Eskom to borrow R4bn for diesel as Treasury dishes out tough love | Business

The stand-off between Eskom and the National Treasury over funding for diesel has ended with an agreement that government will support Eskom borrowing from commercial banks, should it be unable to reprioritise its own resources.

While neither Eskom nor the National Treasury would comment on the agreement or the amount likely to be sought, several people with knowledge of the talks confirmed the arrangement and said that Eskom was likely to seek R4 billion to get it through February and March, after which the new financial year will begin.

As well as the loans it is expected to take, Eskom has been urged to find internal savings. In January, it was able to make R1 billion available for diesel from its own resources. The National Treasury has consistently argued that Eskom does have resources for additional diesel, were it to make different spending choices.

In December, Nersa awarded Eskom one of its largest hikes ever of 18.6%. While President Cyril Ramaphosa has suggested to Eskom that the full amount should not be implemented immediately, Eskom is legally unable to comply and must stick with the regulator's decision.

politicsblahbla Eskom_SA = Government = Treasury = all the same... so who`s bluffing who here? It`s the taxpayers who`s always on the loosing side cause WE PAY for other countries` and business` power while ours are taken away from us! Make that make sense? voetsekanc

politicsblahbla Oh great. Now a state owned enterprise has to take the begging bowl to the banks. What could possibly go wrong with that? Where are Treasury actually shedding the money?

politicsblahbla But if they had been given the funds instead of borrowing the country would have got from the economy now Eskom who are already so deep in debt have another loan to pay

politicsblahbla This is insane. The economy needs to come first. Treasury should of gifted the money.

politicsblahbla Eskom’s diesel budget is around R2.6 bln instead Andre De Ruyter spent R9.3 bln on diesel. White diesel tenderpreneurs are looting Eskom. They so greedy their white papers in trying to sanitize the crime are telling SA its okay to take R4bln loan from white banks for more diesel

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